EXECUTIVE BONUS PLANS
- Incentive plan using Life Insurance, offering key employees multiple benefits:
- Tax-deferred life insurance policy cash value
- Death benefit protection for named beneficiaries
- Provides an additional source of future income
- Helps top talent increase their savings for the future, while helping business owners reward and keep them for the long term
- Employer contributions are tax-deductible
KEY PERSON INSURANCE
- An efficient way to provide a business owner with the funds necessary to handle the untimely death of a key employee and recruit and train a replacement
- Provides cost-effective liquidity to help the business function after losing a key employee
- Provides access to cash values during the life of the policy that may be used for various business needs, including formally financing executive benefits programs
- Low-cost term or permanent policies may provide significant death benefits
BUY/SELL AGREEMENTS
- A blueprint for the planned and orderly transfer of a vested business interest
- Buy/Sell agreements can be set up to cover multiple events, such as death, retirement/resignation/termination, disability, and others
- Requires active funding; life insurance is the predominant funding vehicle
LINKED BENEFIT SOLUTIONS (LIFE INSURANCE/LTC)
- Alternative LTC solutions linked to life insurance (fixed annuity options available also)
- Provides guarantees that traditional LTC cannot:
- Great leverage on assets
- Premiums never increase
- Benefits never decrease
- Death benefit is available if policy not used for LTC
- Some policies offer return of premium options
- Good for business owners or as key employee benefits
LIFE INSURANCE WITH CHRONIC & TERMINAL ILLNESS PROTECTION
Many permanent (and some term) life insurance policies offer riders that will pay at least a portion of the benefits in the event of a qualifying chronic, critical, or terminal illness.
LIFE INSURANCE RETIREMENT PLAN (LIRP)
Some permanent life insurance policies can be structured to maximize cash value growth for the purpose of tax-free retirement income.
DISABILITY INSURANCE / INCOME REPLACEMENT
Disability is a key component of planning for business owners and can help with the following needs in addition to planning for employee benefits:
- Executive Disability Carve-Out – for high income earners capped out on group disability plans, offers an additional discriminatory Guaranteed Issue benefit, usually employer paid
- Overhead Expense – reimburses a business owner for business expenses incurred during a disability
CHRIS RICE, CFP®, CPA/PFS
EXECUTIVE BENEFITS & FINANCIAL SERVICES CONSULTANT
crice@ekmcconkey.com
717-900-1049
717-475-7351